profit margin decline

USAGE SUMMARY

The phrase "profit margin decline" is correct and usable in written English.
It can be used when discussing financial performance, particularly in relation to a decrease in the profitability of a business or product. Example: "The company's recent financial report indicated a significant profit margin decline, raising concerns among investors."

✓ Grammatically correct

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

1 human-written examples

Its top line ($53 billion) has been growing at a 48% annual rate since 2003, and the only weakness is a slight profit margin decline, says the Asia Pacific Fund's Do.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

55 human-written examples

Still, the company's profit margin declined about 1percentt from last quarter.

The New York Times

The gross profit margin declined 112 basis points to 19.02%.

Forbes

But after a conference call to discuss the results, its shares fell as investors became concerned about steeper profit margin declines in 2008 than they had expected.

Forbes

The profit margin declines incrementally in the following two years as greater payroll allocations are made.

Bplans

And if profit margins decline sharply — by about 10 percent or so — history suggests that it's time to say goodbye to the bull market.

The New York Times

Fed officials are hoping that companies absorb the cost of higher wages by letting their profit margins decline, not by passing on price hikes to customers.

The New York Times

The portable chips also bring in bigger profits for Intel, which has seen its profit margins decline over the past year as a result of stronger competition primarily from Applied Micro Devices amd and National Semiconductor nsm –at the low end of the desktop market.

Forbes

Revenue increased 13 percent to $136.3 billion, but profit margins declined to 5.4 percent, from 6.1 percent in 2010.

The New York Times

Gross profit margins declined to 25.9percentt in the quarter, down from 28.9percentt a year ago.

The New York Times

But with the resurgence of Japan and Western Europe in the 1960s and '70s, American profit margins declined and workers got squeezed.

The New York Times - Books

Expert writing Tips

Best practice

When discussing a "profit margin decline", specify the period over which the decline occurred (e.g., "a profit margin decline" in the last quarter).

Common error

Do not just state a "profit margin decline"; provide context, reasons, and potential impacts for a more insightful analysis.

Linguistic Context

The phrase "profit margin decline" functions as a noun phrase, often used as the subject or object of a sentence to describe a negative trend in a company's financial performance. Ludwig AI confirms that this is a correct and usable expression.

Expression frequency: Common

Frequent in

News & Media

60%

Formal & Business

20%

Science

10%

Less common in

Encyclopedias

5%

Wiki

3%

Academia

2%

Ludwig's WRAP-UP

The phrase "profit margin decline" is a grammatically correct and commonly used term to describe a decrease in a company's profitability, as confirmed by Ludwig AI. It functions as a noun phrase and is typically used in professional and neutral contexts like news reports and business analyses. Key alternatives include "decrease in profit margin" and "reduction in profit margin". When using this phrase, providing specific details about the period and reasons for the decline enhances clarity and impact.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

decrease in profit margin

Uses a more general term 'decrease' instead of 'decline'.

reduction in profit margin

Replaces 'decline' with 'reduction', indicating a lessening of profit margin.

erosion of profit margin

Suggests a gradual wearing away of profit margin.

fall in profit margin

Uses 'fall' to describe the decrease.

profit margin contraction

Employs 'contraction' implying a shrinking of the profit margin.

narrowing of profit margin

Indicates that the profit margin is becoming smaller.

decline in profitability

Focuses on the overall profitability decreasing.

profit margin squeeze

Implies external pressures are reducing the profit margin.

drop in profit levels

Describes a lowering of profit levels overall.

worsening profit margins

Highlights that profit margins are getting worse.

FAQs

What does "profit margin decline" mean?

A "profit margin decline" indicates that a company is earning less profit as a percentage of its revenue than it did in a previous period. This can be due to increased costs, decreased sales, or a combination of both.

What are some signs of a "profit margin decline"?

Signs include lower net income, increased cost of goods sold, higher operating expenses, and decreased sales volume. Comparing current financial statements with previous periods can help identify a "profit margin decline".

What can I say instead of "profit margin decline"?

You can use alternatives like "decrease in profit margin", "reduction in profit margin", or "erosion of profit margin" depending on the context.

What factors might cause a "profit margin decline"?

Factors include increased competition, rising input costs, changes in consumer demand, inefficient operations, and poor pricing strategies. Addressing these factors can help improve profitability.